The Interest Clock
Your enemy in construction is not your supplier, or your subs. It is not your lender, without them you probably would not be able to build. Your enemy is the interest clock. When you break ground a little timer goes off, it is the timer on the interest clock...this means from the second you start actual construction, until your house in complete, you will be paying the bank, or lender, for the house.
Shorten Building Time to Reduce Interest
So, who wants to pay for something they aren't even using yet? Nobody. It would be like paying interest on a house that is already built for 6 months before you move in. But, that is how it goes. If you can plan well, and set a schedule that allows you to finish your house by your deadline, you will pay a lot less interest, and defeat this enemy that is going to cost you a lot of money. Interest is one thing you can't avoid. So save yourself some money by beating the interest clock and finishing sooner rather than later.
Calculate Interest
To motivate yourself to get your plans working faster, you should figure out how much interest you are paying each month, day, and hour. That should give you an idea of how much money you really can save by sticking to a schedule, and having actual figures in your head will be a great motivator.
It is inevitable, that due to things beyond your control, your schedule plans will go awry a little bit. However, by anticipating this, and planning for it, or in other words, creating a "Plan B" you can stick to your schedule no matter what, and beat the interest clock.
Back-up plans means that despite the circumstances the work keeps going, which saves money for you by keeping your job on task. The real question is what kind of back-up plans can you create? Subs are going to be your biggest problem, and your biggest help when it comes to beating the interest clock. In order to circumvent the problem part of subs, always have at least two subs you are willing to work with, and whose bids fit your budget. That way, if your top choice bales on you, you still have the job covered, and you don't have to go way over budget to get it done. Let the subs that you are going to use as back-up know that is what they are. Thank them for their time, their bid, and their cooperation, and express to them the desire to use them if for some reason your other choice does not go through. That way, if the job does open up you have someone on board with you that knows you respect them and value them.
Help out in Building you Home
Your next back-up plan should simply be that if no one else can do it, you will fill the void. This is not always the best option, but it beats the work coming to a complete halt. Be prepared to learn the basics to at least get things started until you can find a professional to step in. However, if you don't know the basics, then forget it! You will mess things up that will take more money and time to fix than you will save by doing it. So, instead, if you are having difficulty getting a sub, take that time to clean up the site to perfection, and also use that time to get another sub. Be a foot soldier, you will save more money by going to other building sites and doing what it takes to get a sub for your project ASAP. You need to beat the interest clock, so have your bases covered with backup plans, and make sure you know enough to keep things on track.
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